In a bid to reduce unemployment in Malaysia, the Malaysian Government and Human Resource Ministry have started looking into handing over 15,000 jobs previously performed by foreigners back to the locals.
It is understood that some 15 sectors would be identified, with the services industry being one of them.
“The aim is to ensure that priority for these jobs is given to locals who have been retrenched,” Dr Subramaniam told a press conference after a courtesy visit to Menara Star here yesterday. (source)
Kudos to the Human Resource Ministry! But is this a good move in the long run? Read on below.
Suitable Jobs?
Foreign workers in Malaysian usually perform physical and manual labour in the construction industry, maid service or food and beverage business. If the retrenched locals are previously office workers, it might not be such a good fit for their skills. It would be good, though, to finally go to a coffee shop or restaurant and be able to communicate with the waiter without wondering what language to speak to them in!
Working For Less Pay?
Foreign workers are not highly paid in Malaysia. Often, these construction workers get by with less than RM1,000 a month. Are locals willing to work for these amounts in the dangerous conditions some foreign workers work in? If they pay locals more, this will ultimately be passed on to the customers and we will likely see a price increase in our food, drink and housing prices. It is for this very same reason why plumbers and electricians in Western countries cost more than doctors!
Its All About Profits
How about the employers?
Dr Subramaniam said employers would also be told that they should make work environments more attractive to keep their employees. (source)
Making the work environment attractive means more cost to the employers and tighter margins in an already financially challenging times. With many employers fighting to stay liquid and avoid bankruptcy at this time, it might be hard to convince them to invest in soft skills such as training.
What do you think?
March 5th, 2009 at 1:59 pm
If not mistaken i heard the goverment will pay for the diff.. There is no way local going to work,
March 5th, 2009 at 2:01 pm
If the worker is going to work.. But is the employer would want to hire the local to work ?
They is alot of problem with local workers, they tend to get sick everytime it rains
March 5th, 2009 at 2:38 pm
It’s not about profit.
Most manufacturer will be happy to hire locals to work. Manufacturer need to pay levy, apply for working visa, provide hostel and loads of extra necessity to house foreign worker.
Problems are……
1) Local are not willing to work.
2) Local always MIA or call-in sick.
3) Local doesn’t like to get their hands dirty.
4) Local prefer to accept lower pay than work in a factory.
March 5th, 2009 at 3:00 pm
Hi Dorjee – with all the problems locals give, employers would definitely prefer foreign workers despite having the inconvenience of applying for levies and visas!
March 5th, 2009 at 3:01 pm
Hi SNInc – That’s quite true…and it has been raining a lot in Klang Valley recently!
March 5th, 2009 at 3:02 pm
Hi Iris – Really?! Wow it’ll cost the Government quite a bit of money then and guess where the money is coming from? Us!
March 11th, 2009 at 9:04 am
[...] RM700 million to provide training and job placement opportunities – Local employees skills are to be enhanced with the intention of reducing dependencies on foreign labour. [...]
March 12th, 2009 at 8:31 am
[...] 163,000 training and job placement opportunities will be created to reduce the dependencies on foreign workers – The question that comes to mind again is whether factories are willing to hire locals at a higher price or whether local workers are willing to work the same hours and dangerous conditions that most foreign workers work in. [...]